Modi likely to visit US in September to push trade deal and ease tariff tensions

Planned trip for UNGA session could see talks with Trump on resolving trade disputes, advancing ‘Mission 500’, and addressing the Russia-Ukraine conflict

August 18, 2025

A key goal of the trip is to meet US President Donald Trump to address trade disputes, negotiate tariffs, and potentially announce a trade deal

Progress is needed on both the Russia-Ukraine conflict and the stalled Indo-US trade agreement for the visit to yield results

The US has imposed 50% tariffs on Indian imports—half for high tariffs and half as a penalty for buying Russian oil

The two nations are aiming to double bilateral trade to USD 500 billion by 2030 under the ‘Mission 500’ initiative

Prime Minister Narendra Modi is likely to visit the United States in the last week of September, with plans timed around his address at the United Nations General Assembly (UNGA) in New York. While the official reason is the UN session, a central objective is to meet US President Donald Trump, resolve trade tensions, and work towards a bilateral trade deal.

According to officials, two major developments must align for the visit to succeed, progress on the Russia-Ukraine war and movement on the Indo-US trade agreement. India is closely watching Trump’s meeting with Russian President Vladimir Putin on 15 August, which will focus on a potential resolution to the conflict. Modi has recently spoken to both Putin and Ukrainian President Volodymyr Zelenskyy, conveying that a settlement is in India’s interest. Zelenskyy has indicated they plan to meet in September during the UNGA.

On trade, negotiations between the Indian and American teams had reached an advanced stage, but Trump rejected the terms agreed upon by negotiators. Both sides are now revisiting the deal, with new proposals expected before the leaders meet. The discussions are framed around ‘Mission 500’, an ambition set during Modi’s February White House visit to more than double bilateral trade to USD 500 billion by 2030. This target requires new, fair-trade terms, with both nations working towards a first tranche of a multi-sector Bilateral Trade Agreement (BTA) by autumn.

The proposed BTA aims to boost market access, cut tariff and non-tariff barriers, and strengthen supply chain integration across goods and services. However, talks have hit roadblocks, and negotiators are under pressure to resolve issues before Modi’s trip, which is expected to finalise the deal.

India has requested a speaking slot at the UNGA for the morning of 26 September, with Trump scheduled to address the assembly on 23 September. The visit would allow Modi to hold bilateral meetings with Trump and other leaders, smooth strained ties, and set the stage for Trump’s expected October visit to India for the Quad summit.

Relations have been tested in recent months after Trump claimed to have mediated a ceasefire between India and Pakistan,  a statement denied by Delhi, and after he criticised India over tariffs, subsequently imposing a 50% levy on certain imports. Sources say that, as strategic partners, the two countries are keen to settle disputes and move forward.

Source: Indian Express

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